U.S. and Chinese officials announced on Monday, May 12, 2025, an agreement to roll back recent tariffs and establish a 90-day truce in their trade war. This agreement aims to allow further talks to resolve ongoing trade disputes. The move led to a sharp rise in stock markets globally, signaling relief from economic uncertainty.
U.S. Trade Representative Jamieson Greer stated the U.S. would reduce its 145% tariff rate on Chinese goods by 115 percentage points to 30%. China agreed to a similar reduction, lowering its rate on U.S. goods to 10%. The tariff reductions were announced at a news conference in Geneva.
China's Commerce Ministry views the agreement as a crucial step toward resolving differences and fostering cooperation. While economists caution that tariffs remain elevated, this truce offers a foundation for future negotiations. The agreement impacts international trade relations and market stability.